North Carolina Down Payment Assistance Systems

Payments Gateway - These programs would be the Mortgage Credit Certificate as well as the deposit Assistance Program.

If you qualify for one of these plans and you purchase a house between December 1, 2009 and January 1, 2009, it is also possible to be eligible for the $8,000 tax credit only enacted into law.

First, who's a first-time Home Buyer? There is a first-time Home Buyer someone who has not owned a house within the past three years. This is precisely the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with moderate and low incomes. All home owners can claim an itemized deduction. The MCC takes this a step farther.

You'll be able to claim 20% of the interest you pay on your mortgage as a credit in your federal income taxes should you are eligible for the MCC. It is possible to save as much as $2,000 on your taxes.

You'll find a way to combine this with the $8,000 tax credit should you qualify for 2009, for the MCC. This may reduce the tax liability of a buyer's by $10,000.

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and every other person expected to live in the residence who is 18 years of age or older.”

The income and house price limitations that apply in Durham, Orange and Chatham Counties are listed below.

MCC Income Limits 1 Individual $61,500 2 Individuals $61,500 3 Individuals $70,500 4 Persons $70,500

MCC Sales Price Limitations New Dwelling $220,000 Existing Residence $210,000

Who Qualifies for Down Payment Help?

Home buyers that need help with their down payment and closing prices may be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The purchaser just has to pay $1,000 of their own funds and the load would pay around .

This program has more stringent income limits than the MCC plan summarized above. Like the MCC program, it can be used together with the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The down payment help, nonetheless, cannot be employed in combination with all the MCC. This is an either or situation.

House price limits that apply in Durham Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Men $45,650 3 Persons $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New Dwelling $210,000 Existing House $210,000